With Abu Dhabi investing 7.5 billion of his oil money in Citigroup, it’s time to ask the question… is it time to buy? Rumors are circulating that this isn’t the only deal in the works. CNBC open speculated that someone might invest significant amounts in homebuilders in the coming weeks. I believe the answer yes. Foreigners are looking at investing because it’s a relative bargain with the weak US dollar.
I’ve been thinking about how I can take advantage of this. The obvious answer would be to invest new money in financials (perhaps the XLF ETF) and/or homebuilders. There are still a lot of unanswered questions in these sectors. However, if have a long term outlook, perhaps now is a good entry point. I might shift around a few dollars in my retirement accounts. It’s times like this where I regret not moving my 401K to an IRA to invest with Zecco. There’s a small annual fee for retirement accounts, but you can rebalance as often as you like for free (just be careful of bid/ask spreads.)